Car Trade-in Activities in China with Subsidies

TapTechNews May 19th news, according to CCTV Finance and Economics report, currently, the car trade-in activities are being carried out across the country, and the first batch of national car trade-in subsidies have been issued.

In April this year, the Ministry of Commerce, the Ministry of Finance and other 7 departments issued the Detailed Rules for the Implementation of Car Trade-in Subsidies. From the date of issuance of this detailed rule to December 31, 2024, for individual consumers to scrap fuel passenger cars with national standard III and below or new energy passenger cars registered before April 30, 2018 (including the same day, the same below), and purchase new energy passenger cars included in the Catalog of New Energy Automobiles for Vehicle Purchase Tax Reduction and Exemption of the Ministry of Industry and Information Technology or fuel passenger cars with a displacement of 2.0 liters and below, a one-time fixed subsidy is given.

Among them, for those who scrap the above two types of old cars and purchase new energy passenger cars, the subsidy is 10,000 US dollars; for those who scrap fuel passenger cars with national standard III and below and purchase fuel passenger cars with a displacement of 2.0 liters and below, the subsidy is 7,000 US dollars.

In addition, the Ministry of Commerce clearly stated that the trade-in subsidy policy can be superimposed and enjoyed with the reduction and exemption of new energy vehicle purchase tax, purchase financial credit support, and enterprise supporting preferential policies, forming a package. In the process of policy design and implementation, the focus will also be on many aspects such as overall planning and consideration, high efficiency and convenience, including the development and construction of a national unified car trade-in information service platform, and the launch of mini-programs on WeChat, Alipay, TikTok, and UnionPay QuickPass to facilitate the public to apply for subsidies for car scrapping and renewal.

TapTechNews noticed that at present, many brands such as BYD, FAW-Volkswagen, Mercedes-Benz, Chery, Buick, etc. have announced the launch of trade-in activities, which can be superimposed with national subsidies to further increase the preferential intensity.